Simon Davenport QC acted for LPA receivers appointed over a cider factory on the trial of a claim in which it was alleged that the receivers had acted in bad faith by preferring the interests of their appointor over the interests of the mortgagor company.
The claims were ultimately dismissed, the Judge finding that the claim was “(over-optimistically) bolstered by the judicious hewing of extracts from emails and other correspondence, to create an impression of some kind of conspiracy between the trade rival and the defendants” when “there was nothing of that kind here”.
The judgment contains useful consideration of the authorities on dishonesty and bad faith and the line between the two when allegations are made against office-holders. It also considers the evidential value of internal emails and the use to which they can be unfairly put to support an inference of bad faith.
Simon Davenport QC has co-written about the impact of the judgment, the article was first published in Lexis®PSL Restructuring & Insolvency on 8 April 2019.